UBS plans step down trigger autocallable notes linked to three ETFs

By Angela McDaniels

Tacoma, Wash., Dec. 11 – UBS AG, London Branch plans to price 0% step down trigger autocallable notes due Dec. 20, 2019 linked to the least performing of the iShares Russell 2000 exchange-traded fund, the Technology Select Sector SPDR fund and the SPDR S&P Regional Banking exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

After one year, the notes will be automatically called at par of $10 plus a call return if each ETF closes at or above its call threshold level on any quarterly observation date. For each ETF, the call threshold level will be equal to the initial share price for every observation date except for the final observation date, Dec. 16, 2019. For the final observation date, the call threshold levels will be 60% of the ETFs’ respective initial share prices. The call return rate is expected to be 6.85% to 7.35% per year and will be set at pricing.

If the notes are not subject to an automatic call, then the final share price of at least one ETF will be less than its downside threshold, 60% of its initial share price, and investors will be exposed to the decline of the least-performing ETF from its initial share price.

UBS Financial Services Inc. and UBS Investment Bank are the underwriters.

The notes will price Dec. 15.

The Cusip number is 90280X869.

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